Up to half of the 6.8 million Americans who received premium subsidies in 2014 could end up owing the federal government money because of it this tax season, The Wall Street Journal reports.
According to an analysis by top tax firm H&R Block, as many as half of the customers who got premium subsidies may end up owing the federal government money after being overpaid throughout the year.
The problem is that customers have to estimate their income for the upcoming year when applying for Obamacare subsidies — and any mistakes or changes could mean that the IRS actually overpays them.
“The ACA is going to result in more confusion for existing clients and many taxpayers may well be very disappointed by getting less money and possibly even owing money,” Charles McCabe, president of Peoples Income Tax and the Income Tax School, told WSJ. “The whole implementation of Obamacare will be frustrating for tax preparers.”